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1988-12-29 SPMAGENDA TOWN BOARD TOWN OF WAPPINGER YEAR END METING DECEMBER 29, 1988 1. SUPERVISOR CALL MEETING TO ORDER 2. ROLL CALL /3. Transfers of Accounts c74-;----.Znauttilieting -198.Q. funds 5. Resolution regarding Audit of 1987 6. 7. Approve Bid for Recreation Commission Pick -Up Truck Vehicle for Building Inspector (T. Classey) 8. Setting Dates for Fleetwood Water System 9. Set Date for Reorganizational Meeting 10. CLOSE MEETING L 343 The Year End Meeting of the Town Board of the Town of Wappinger was held on December 29, 1988, at the Town Hall, 20 Middlebush Road, Town of Wappinger, Dutchess County, New York. Supervisor Paino opened the Meeting at 7:40 P.M. Present: Irene Paino, Supervisor Vincent Farina, Councilman David Reis, Councilman Constance Smith, Councilwoman Robert Valdati, Councilman Elaine H. Snowden, Town Clerk Others Present: Dennis Lasowski, Comptroller This meeting was set by the Supervisor at the regular meeting of the Town Board on October 3, 1988. A Resolution for Transfers was placed before the Board for their consideration. Mrs. Smith reviewed each line item with the Comptroller, objected to two categories and expressed concern on another one. The account 00-01-1450.40, $1,601.53 was in regard to election expenses, contractual, which had already been paid and should not be included in this resolution. A second item, 00-01-1620.10, in the amount of $1,600.00, was an amount overexpended in the maintenance account and according to the Comptroller, it was due to expenses incurred by hiring a second maintenance man. Mrs. Smith objected to this item since the part time person was hired without Town Board authorization. Account #01-07-8020.40, $11,000.00 was for extra monies for the planner hired by the Planning Board. The Comptroller informed the Chairman that the account was overdrawn and was told to make a transfer. Mrs. Smith felt they should stick to the budget amount when they contracted with the planner; it was her understanding lipe that were going to use $12,000 from the budget and $12,000 from the fees they impose. Another question posed by Mrs. Smith was why weren't they transferring monies into the Engineer's account since his A & B fund comes to about $52,000 and he has already been paid to date the sum of $122,945.77 ---how did they manage that. Mr. Lasowski did not agree with Mrs. Smith's figures and noted that the account was not overdrawn. He asked to be shown the figures she was reviewing and they agreed to discuss this at another time. 344 Mrs. Smith would not vote in favor of the resolution since there were two illegal transactions included which she stated that the Supervisor should not have allowed. Mr. Valdati also could not support the resolution as presented since the Comptroller has stated that at least one item has already been paid without authorization. The items in question were. 00-01-1450.40, Elections Contractual, $1,601.53, already paid without an authorized transfer, and 00-01-1620.10, Maintenance personnel, hired without Town Board authorization, amount of $1,600.00. Mr. Farina stated that he would abstain since he had just received the information. The resolution as presented was defeated; the two items Mrs. Smith and Mr. Valdati objected to were deleted and the resolution was again placed before the Board. The following resolution was offered by SUPERVISOR PAINO who moved its adoption: WHEREAS, bills have been or will be presented to the Town of Wappinger, and WHEREAS, these bills will exceed various appropriations, BE IT RESOLVED, FROM A 00-01-1990.40 A 00-01-1315.13 A 00-01-1330.20 A 00-01-1990.40 A 00-01-1110.13 A 00-01-1990.40 A 00-01-1680.20 A 00-01-1990.40 B 01-02-3120.10 B 01-02-3620.20 B 01-01-1990.40 B 01-07-8015.20 B 01-01-1990.40 Seconded by: Roll Call Vote: the Town Board approve the following 39.00 320.99 5.10 52.00 900.00 32,500.00 900.00 300.00 800.00 60.00 490.00 15.00 11,000.00 Councilman Reis 5 Ayes 0 Nays TO 00-01-1010.40 00-01-1315.20 00-01-1315.40 00-01-1330.40 00-01-1620.11 00-01-1110.14 00-01-1320.40 00-01-1680.40 00-04-5010.11 01-02-3120-40 01-02-3620.40 01-05-3620.40 01-07-8015.40 01-07-8020.40 transfers. 39.00 181.99 139.00 5.10 52.00 900.00 32,500.00 900.00 300.00 800.00 60.00 490.00 15.00 11,000.00 Although the item for encumbering funds to pay the 1988 remaining bills was placed on the Agenda, the Comptroller informed the Board that the Accountant said they no longer do that, it is now Accounts Payable for 1988 and these accounts will close on January 15, 1989. There was some discussion between the Comptroller and the Board on this procedure. Mr. Valdati requested the Comptroller to write to the Board explaining this method of handling the 1988 bills which have not been received to date but are to be paid from the 1988 funds. 345 He also noted that any correspondence from the Accounting Firm regarding the Accounts Payable for 1988, should be copied to the Board Members. Mrs. Paino had previously requested that a resolution regarding the Audit for 1987 be placed on this Agenda. She explained that at a previous meeting with the firm currently servicing the Town, Sedore, O'Sullivan and Letterio, they informed the Board that their fee for the Audit will increase from $11,000 to $25,000 plus additional work they will have to do to provide the Town with beginning balances. They also stated that in addition to the $25,000, another $7,500 will be charged and she has since received a Letter of Engagement from them including another $6,250 and $2,400 charge which will bring the total to a sum of approximately $41,000, instead of the $11,000 they originally agreed to do the audit for. It was Mrs. Paino's opinion that since they have been the Accountants for the Town for several years they should be aware of the work involved to complete the 1987 Audit. It was mentioned that perhaps the Town should look into another firm and compare their fee. An interview was set up with a firm from Westchester, Bennett Keilson and Co. and a proposal was since received from them indicating that they will perform the 1987 Audit plus additional work necessary to provide beginning balances at a total cost of $17,000 to $19,000. A work shop meeting was held with them and the Town Board with the exception of Mr. Valdati who was later apprised of the discussion by Mrs. Smith. The Board was also informed that this fee could be reduced if the present accounting firm provides them with work they have already done for the Town in this regard. Mrs. Paino moved to rescind the Town's Agreement with the Accounting firm of Sedore, O'Sullivan and Letterio, due to their inability to provide servicesto the Town at the contracted amount of $11,000, and hire the firm of Bennett Keilson & Co. to perform the Audit for 1987 at a total cost of $17,000 to $19,000. Seconded by: Mr. Reis Roll Call Vote: Mr. Farina Nay Mr. Reis Aye Mrs. Smith Nay Mr. Valdati Nay Mrs. Paino Aye Motion Defeated 346 Mr. Reis was concerned that the present Accounting Firm should have increased their fee to such an extent since they have been serving this administration since they put into office and should have been aware of the work that was needed. Mrs. Smith had many problems with hiring a new Accounting Firm; first of all when they did meet with the present firm they stated that there were many problems in the bookkeeping, the books were in total disarray, transfers were not done properly, no controls on the accounting system, co -mingling accounts, not reconciling checking accounts, etc. It appears that once it surfaced that there were many problems, the Supervisor wants to hire a new firm and Mrs. Smith felt something was being covered up and hidden. She wanted everything brought out in the open so it is known, then get it cleaned up and working properly. If, in fact, the Supervisor wanted to save money, why contact a Yorktown firm through our Yorktown Zoning Administrator and met privately with them and Mr. Reis without the knowledge of the other members of the Board. She felt it was done underhanded, however, if it had been done on the up and up, with the proper participation, she could have felt differently. As it is now, it's just a way of covering up things. Mr. Valdati voted nay for many reasons and one was fiscal responsibil- ity which is the chief function of the Supervisor. Sedore & O'Sullivan have been working with the Town for many years in order to allow the Supervisor to perform this responsibility fully. They brought the Town out of another disarray in 1985 and he recalled Mrs. Paino lauding their performance. In order to forestall they put forth a program to follow for accounting have provided numerous correspondence to the Town keeping and cash etc. to help the have brought out further problems procedures. They explaining record receipts, check disbursements, bank reconciliations, Town stay on the proper line. The state auditors many problems, weaknesses in internal controls, books and records do not reconcile with the bank, concern over integrity of funds, budgetary system not in compliance with State Law, trial balances and general ledgers improperly kept, improper bidding procedures, lack of cash control within each fund, Zoning Administrator's cash records cannot be firm, he pointed out, handles business in this County, so they are well aware the audit sense. To eliminate a watch tied many in appropriately. This other towns and villages of fiscal responsibility in dog at this point and time 347 that is obviously working toward the Town's best interests, hire a firm that is not local but will also come in well below acceptable rate in this profession, makes him question the rationale for this firm to perform this function at a substantially lower rate. It appears to him that there have problems with the fiscal responsibility for several years and it is time to rectify them with the highly professional firm that is familiar with the Town's books. Mrs. Paino, in voting aye, felt it was the responsibility of this Town Board to get the best professional help they can get at the best dollar they can get. The Town Board had a full work shop meeting with the proposed new firm, so Mrs. Smith's statement is not true. She met with the firm herself prior to the work shop so she could tell them what the problems were and what the state auditors recommended as to areas that required attention. The areas itemized by Mr. Valdati were ones outlined by the state auditors, not Sedore and O'Sullivan, so no matter who the auditing company would be they have to respond to the concerns of the state auditor. There's no elimination of a watch dog as the ultimate one is the state and it is their function to go through the books of the municipality being audited. As for the firm of Bennett Keilson & Co., they are not some little firm from nowhere with no previous experience; on the contrary, they are highly professional and serve communities in five counties, four cities, nineteen villages, ten towns and twenty-three school districts. She felt that a company that has been with the Town over a couple of years and knew the status, should not have presented a low ball figure of $11,000 and turn around a year later and present a fee for over $41,000 which does not include $3,400 that has been already been paid, nor does it include an additional $5,500 that has recently been billed to the Town. She introduced this resolution in the best interests of the taxpayer, although she felt it would be defeated. She understood the necessity for fiscal respon- sibility and thus introduced the resolution. Now that this has failed they do need one to engage the services of a firm to conduct the audit. There was a brief discussion between Mrs. Smith and Mrs. Paino regarding the two accounting firms, also Mrs. Smith had a letter of confirmation from Sedore and O'Sullivan stating when they were at the Town Hall working on the audit, contrary to what Mrs. Paino 348 had told her. Mr. Valdati reiterated some of his statements on fiscal responsibility and claimed that this neglect has caused the additional fee to be charged by the Accounting Firm. In all of their correspondence they have signed off with their offer to assist the Town with anything they need and also an offer of a Letter of Engagement authorizing them to do the work. This has not been done so now they are faced with a deficit in spending because they have exceeded the original figures due to improper financial procedures of the chief fiscal officer. Mrs. Paino responded that Sedore and O'Sullivan had indicated that they would set forth some guidelines to assist the Town which they have done. After receiving their letter of November 20, 1987, she, the Comptroller and the Bookkeeper discussed the items that should be taken care of. This included the general ledger which they all agreed had been completed, record keeping had been completed (checking off receipts and check disbursement), they agreed that doing cash receipts every two weeks was acceptable, they indicated that cash disbursements were not in the computer and they have been working on bank reconciliations. They have not provided beginning balances but are working on it at this time. Her point was that nobody should assume and be led to believe that they were not keeping on top of things. There have been many times when Sedore and O'Sullivan have been scheduled to work with the Comptroller but they have not shown up. They have not forwarded a Letter of Engagement to Mrs. Paino and said that they needed it to do this work. The only one she received was the one for $11,000 which was signed January 21, 1988; the only other one she has is the one they all have copies of, for another $25,000 plus an additional $7,500, plus $6,250 plus $2,400. Mrs. SMith said this was to shape up the general ledger, give them an opening balance, a trial balance which is the Comptroller's job; these, she continued are all extra, above and beyond the actual audit which they have to do before they can audit because of the disarray. Further discussion ensued between Mrs. Paino, Mrs. Smith and Mr. Valdati relating to a breakdown of the Accountant's costs and the two Councilpeople contended that these extra costs were due to the fact that the work was not being done by our Comptroller or our chief fiscal officer. 349 Mrs. Paino reiterated during this discussion that the proposed Accounting Firm handles a vast number of municipalities, and she had previously mentioned that they did work for Dutchess County. Mrs. Smith had checked on this and found that they were doing the hotel taxes which is a small job, due to the fact that he was low bidder, however, had it been a big job, the Comptroller said he would not have hired him because they had made a mess of a previous County job. Mr. Reis commented that she should have checked with the Wappinger School District who were pleased with the firm. Each Member interjected their comments on the matter at hand and the discussion concluded when it was agreed that they get on with the business of hiring an accounting firm to conduct the 1987 Audit. MRS. SMITH moved to direct the Supervisor to sign the Letter of Engagement with the firm of Sedore, O'Sullivan and Letterio. Seconded by: Mr. Valdati Roll Call Vote: 3 Ayes Mr. Reis ---Nay Mrs. Paino---Nay Motion Carried Mr. Farinahad done most of the listening during the previous discussion and in voting for this motion, commented that he felt ti was imprudent to change firms at this time since there seems to be a cloud over the Town's finances and it could be magnified if they changed auditors. Due to the comments made tonight, there would always be a cloud if the other firm was hired. Also, in a Class A Town such as ours, the Supervisor is the chief fiscal officer under Municipal Law, the Comptroller is the one who maintains the responsibility under the direct supervision of the Supervisor; it is his responsibility to see that his office runs properly. Two bids were received on a Pickup Truck for the Recreation Commission; Mr. Holt, Chairman of the Commission recommended that they accept the bid from Dutchess Dodge in the amount of $11,347.00 with an additional charge of $400 to paint the truck green; the bid from Freedom Ford, was for a total amount of $12,027.00. Mr. Farina differed with Mr. Holt's recommendation to accept the lower bid from Dutchess Dodge plus the extra $400 for repainting. He felt a repaint job would be a waste of money and not a durable process, based on his own experience. MR. FARINA moved to accept the bid from Dutchess Dodge as low bidder, in the amount of $11,347.00, without the repaint job. Seconded by Mrs. Smith Motion Unanimously Carried 350 A request from the Building Inspector to go to bid for a vehicle was previously discussed at a work shop meeting and at that time he was directed to provide the Board with specifications for the vehicle that his job required. He was present with information on specs received today and informed the Board that according to State Bid information, a Ranger 4 x 4 pickup, would cost $8,723 plus additional cost for six cylinder, cap and extended cab, to total cost of $10,253. He had also priced a Bronco II, six cylinder, cost $14,398. Mr. Reis voiced his opinion that he would rather see the Town purchase a more functional truck. MR. REIS moved to authorize Mr. Classey to go out to bid on a multi-purpose 1988 or 1989 vehicle and advertise in the Southern Dutchess News and the Poughkeepsie Journal. Seconded by: Mrs. Paino Roll Call Vote: 3 Ayes Mr. Farina ---Nay Mrs. Smith ---Nay The following resolution its adoption: was offered by SUPERVISOR PAINO who moved WHEREAS, the Town Board met with the Engineer to the Town in Workshop Session on December 22, 1988, and WHEREAS, the Engineer to the Town indicated that the Dutchess County Department of Health was insisting that certain improvements be made to the Fleetwood Water District in the Town of Wappinger in order to insure the public health and safety, and WHEREAS, the Health Department has indicated that the Fleetwood Water District may be in violation of the New York State Sanitary Code, and WHEREAS, It is necessary in order to preserve the welfare and safety of the users of the Fleetwood Water District that certain repairs and actions be taken immediately, and WHEREAS, because of the foregoing the Town Board does hereby authorize the Engineer to the Town to proceed immediately with the installation of new water storage tanks in the Fleetwood Water District with a target date for completion to be April 30, 1989, and BE IT FURTHER RESOLVED that the Engineer to the to proceed with the restoration of the wells and the of a new service panel, with the target date for the this work to be SEptember 30, 1989, and BE IT FURTHER RESOLVED that authorized to indicate the above Department as the intent of this Town is directed installation completion of the Engineer to the Town is target date to the Health Board, and BE IT FURTHER RESOLVED that this situation is deemed to be an emergency situation pursuant to the General Municipal Law provisions with respect to public bidding. Seconded by: Councilman Reis Roll Call Vote: 5 Ayes 0 Nays The following resolution was offered by SUPERVISOR PAINO who moved its adoption: WHEREAS, the Town Board previously authorized the Town Supervisor to enter into a Contract for the purchase of the Wappinger Park Homes, Inc. Water Compnay, and WHEREAS, the purchase price of said Water Company is Sixty - Four Thousand ($64,000.00) Dollars, and WHEREAS, until the Wappinger Park Water District is able to place a Bond to cover the cost of acquisition and improvements to be made, it is in need of a loan of funds from the General Fund of the Town, and WHEREAS, the Town Comptroller has advised the Board that there is sufficient fund balance in the General Fund for the A Fund to cover theloan of these funds, NOW, THEREFORE, BE IT RESOLVED, that the Supervisor and Town Comptroller be and hereby are authorized to loan a sum not to exceed Seventy Thousand ($70,000.00) Dollars from the General Fund A Fund balance to the Wappinger Park Water District, and BE IT FURTHER RESOLVED that said Seventy Thousand ($70,000.00) Dollars shall be used to pay the purchase price of Sixty -Four Thousand ($64,000.00) Dollars, the various closing costs and adjustments of approximately One Thousand ($1,000.00) Dollars, and the well tests bills, etc., which have been submitted which are a charge against this District, and BE IT FURTHER RESOLVED that this money shall be repaid by the Wappinger Park Water District as soon as the Bond Anticipation Note can be placed and the funds shall be repaid to the A Fund. Seconded by: Councilwoman Smith Roll Call Vote: 5 Ayes 0 Nays The Reorganizational Meeting for 1989 was set for January 2, 1989 at 7:30 P.M. at the Town Hall. There was no other business to come before the Board. MRS. PAINO moved to close the meeting, seconded by Mr. Farina and unanimously carried. The meeting closed at 8:53 P.M. Year End Mtg. 12/29/88 a aine H. Snowden Town Clerk SA41,,k, 351